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Aid And Growth: A Comparative Study Between Sub-Saharan Africa And Asia

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  • Ferreira, I.A.R.
  • Simoes, M.C.N.

Abstract

This study investigates the relationship between aid and economic growth and analyses factors that might have influenced this relationship in two major aid recipients regions, Sub-Saharan Africa and Asia that started from similar levels of real GDP per capita but had different patterns of development. The results from applying generalised method of moments procedures to a sample of 44 Sub-Saharan African countries and to a sample of 31 Asian countries from 1972 to 2007 indicate a negative relationship between aid and growth in both regions. Mixed results were found for the influence of policy variables, institutional quality and financial development.

Suggested Citation

  • Ferreira, I.A.R. & Simoes, M.C.N., 2013. "Aid And Growth: A Comparative Study Between Sub-Saharan Africa And Asia," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 13(1), pages 113-132.
    • Handle: RePEc:eaa:aeinde:v:13:y:2013:i:1_10
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    Cited by:

    1. GUISAN, Maria-Carmen, 2017. "Manufacturing And Development In Countries And Areas Of Africa, 2000-2010," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 17(2), pages 137-148.
    2. Akame, Afuge & Mavrotas, George, 2024. "The differential effects of foreign aid to sub-Saharan Africa," IOB Discussion Papers 2024.01, Universiteit Antwerpen, Institute of Development Policy (IOB).

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    More about this item

    Keywords

    foreign aid; economic growth; Sub-Saharan Africa; Asia; aid effectiveness.;
    All these keywords.

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • F35 - International Economics - - International Finance - - - Foreign Aid

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